Insurance Act No.54 of 2005 - Vanuatu Financial Services ...

PART 10 – PREMIUM AND PAYMENT OF PREMIUM71 Receipt for premium paid in cash and validity of policy(1) The person to whom a premium is paid must give the person who paid the premium areceipt for the payment.(2) The receipt must state the name, address and contact number of the person who receivedthe payment, the provisional policy number and the name of the insurer on whose behalfthe premium is received.(3) For the purposes of the validity of an insurance policy, the payment of a premium underthe policy to a person authorised to act on behalf of the insurer is taken to be payment tothe insurer under the policy.72 Collection of premiums by intermediaries(1) An insurance intermediary must not receive, hold, or deal with premiums payable underan insurance policy entered into or to be entered into with an insurer unless authorised todo so by the insurer.(2) The premium must be paid by the insurance intermediary to the insurer:(a)(b)within 30 days of receiving the premium; orwithin another period agreed with the insurer.73 Policy suspended until payment of first premiumAn insurer’s obligations under an insurance policy, other than a fund policy or a reinsurancepolicy, are suspended until:(a)(b)(c)if there is only one premium – that premium has been paid; orif there are two or more premiums – the first premium has been paid; orarrangements to the insurer’s satisfaction have been made to pay the premium bydebit order, credit card or other instrument.74 Failure to pay premiums(1) If a premium under an insurance policy, other than a fund policy or a reinsurance policy,has not been paid on its due date:(a)the insurer must inform the policyholder in writing of the non-payment; and55